Residential Development: Three Crucial Considerations for a Successful Subdivision

Construction & Contractors Blog

Land subdivision can increase the value of your property during development. In simple terms, the multiple lots created after a subdivision will allow for the sale or lease of each independent section. The total earned is often higher than if the tract was sold or leased as a single piece. Also, subdivision ensures extraction of maximum land value because different lots can be handled differently.

For instance, the landowner can use one section for a personal home while the others can become a source of rental income. However, keep in mind that subdivision is not just about sectioning land into multiple parts. The process is complex and requires careful planning for maximum profitability. Here are core considerations to help you prepare for a successful subdivision.

Market Factors

Avoid subdividing your land before confirming the demand for such lots in the local area. In simple terms, do not assume that subdivision is the best approach to earning more money just because you have a large tract of land. In some areas, large pieces of land are more attractive to potential buyers. Therefore, if the lots are small, marketing will be difficult. You can avoid trouble by conducting an investigation. Consult specialists in the property development market and find out the demand for smaller lots. The best professional for complete information is a land surveyor. They will give you information on the land usage patterns in your locale. You can also reach out to residential contractors and agents for supplementary details.

Legal Factors

Legal challenges can affect the success of your subdivision even if there is significant demand. Therefore, check the applicable laws of your planned development to avoid pitfalls. The most critical is the zoning laws. Each area has a minimum lot sizing. Make sure that your land is large enough to meet the outlined requirements after sectioning. Also, think about easements and covenants because they will interfere with the ease of subdividing. Easements allow other parties to use land without ownership. If the subdivision will affect the usage by the benefiting parties, the subdivision cannot proceed. Covenants might prevent you from dividing your land or using it for other purposes.

Financial Factors

Finally, calculate the subdivision expenses for the process. Do not only consider the standard costs of sectioning the tract of land. Look into local council expenses such as the permit fees and planning application charges. Also, check the applicable development contributions required for your subdivision. The costs might include utility extension to the lots and community infrastructure. 


9 July 2021

Extending the patio

When we moved into the house we had a really cute patio, but it was so small that if more than two people wanted to share a meal or sit together there wasn't room. That's why I have been extending the patio and working on ways to make it more hospitable for the whole family to spend time out there, such as getting the music system to connect to some speakers in the structure. This blog has some tips for homeowners who are looking to attempt a patio renovation or extension and has some tips on which jobs to DIY and when to call in the professionals.